Explain the relationship between the long-run average cost curve and the concept of economies of scale.

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Economics

ISBN: 9781292430645

8th Global Edition

Authors: R. Glenn Hubbard, Anthony P. O'Brien

See More Books

Question Posted: Mar 06, 2024 06:01 AM

See More Questions

Which of the following is true about the long runaverage cost curve? The long run average cost curve is comprised of all the lowestpoints of each of the short run average cost curves because no...
A: Consider a firm whose technology has decreasing returns to scale throughout and who faces a recurring fixed cost. Denote the level of capita chosen in the long run at the lowest point of the long...
A: Assume that the production technology uses labor and capital k as inputs, and assume through- out this problem that the firm is currently long run profit maximizing and employing a production...
Choose any company from Muscat Security Market and download its recent balance sheet and income statement (Attach them to the assignment). Find and interpret the result of the following ratios: a....
Can economic analysis provide a final answer to the question of whether the government should intervene in markets by imposing price ceilings and price floors? Briefly explain.
Entity A has a subsidiary B, which has been struggling in recent years and requires significant investment to expand its operations. Entity As owners do not have sufficient financial resources...
4. Turn to the Contents Overview on pages x-xi, and reflect on what you've learned from this textbook. a. Which chapter or chapter extension was the most interesting to you? b. How can you use your...
The unemployment rate for 18-to 34-year-olds was reported to be 10.8% (The Cincinnati Enquirer, November 6, 2012). Assume that this report was based on a random sample of four hundred 18- to...
Calculate Marigold Outdoorss gross profit and gross profit margin for the month of April. (Round gross profit margin to 1 decimal place, e.g. 1.2 and gross profit to the nearest whole dollar, e.g....
The steel plane truss shown in the figure is loaded by three forces P, each of which is 490 kN. The truss members each have a cross-sectional area of 3900 mm2 and are connected by pins each with a...
Briefly explain why a firm in a perfectly competitive market would generally face a horizontal demand curve. What implications do you think this has for the price of its product?
Do you think diseconomies of scale are possible? What would it mean for a firm? Briefly explain your answer by mentioning a real-life example.
For low-speed (laminar) flow in a tube of radius ro, the velocity u takes the form u = B p/ (r2- r2) Where is viscosity and p the pressure drop. What are the dimensions of B?
Q3. (a) Sketch and name the road structure layers including the bituminous coating layers. State the material's CBR value and the degree of compaction (DOC) for each road layer required by road works...
2. Justify the following in terms of impulse and momentum: a. Why are padded dashboards safer in automobiles?
The kidneys are an essential organ to regulating blood pressure in the cardiovascular system. Renal epithelial cells feature cilia on their surface, which allows them to sense blood flow in the...
Novak Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials 9 square yards...
Develop a one-week schedule for your Housekeeping employees. Using the Excel spreadsheet that is attached above, you will prepare a schedule for the week The day-by-day occupied rooms forecast has...
How many questions should the survey contain to adequately address all possible new menu items, including the notion of introducing new cuisines?
Currently, there are five concepts of food stands, including: hot dogs, soft pretzels, turkey legs, sandwich wraps, and funnel cakes. This approach will double the existing number of food stands...
The federal budget for national defense has increased substantially to pay for the Iraq war. How would GDP in the United States have been affected if this higher defense spending led to? a. larger...
The federal budget for national defense has increased substantially to pay for the Iraq war. How would GDP in the United States have been affected if this higher defense spending led to? a. larger...
Explain why G has the same multiplier as I, but taxes have a different multiplier.
The major justification for adding Step 0 to the U.S. GAAP impairment test for goodwill and indefinite lived intangibles is that it: A. Saves money spent estimating fair values B. Results in more...
Regarding research and experimental expenditures, which of the following are not qualified expenditures? 3 a. costs of ordinary testing of materials b. costs to develop a plant process c. costs of...
Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting...

Explain the relationship between the long-run average cost curve and the concept of economies of scale.

Question:

Step by Step Answer:

The longrun average cost LRAC curve and the concept of economies of scale are closely related in the field of microeconomics and production theory Eco...View the full answer

Economics

Students also viewed these Business questions